The assessee-company was incorporated to develop, operate multipurpose port terminal. For the purpose of the port terminal project, the assessee raised share capital as foreign inward remittance from its holding company (P.) Ltd. Cyprus. The IPO was raised for the specific purpose of developing multipurpose port terminal facility and logistics facility at Karanja Creek. However, the port terminal could not be developed as envisaged and planned as it was delayed for various reasons beyond the control of the assessee and therefore the unutilized funds as received from the IPO were put in fixed deposits and ICDs with banks and non-Banking finance companies till the resumption of development work of the port terminal and other facilities at Karanga Creek.   The assessee, treated the said interest as capital in nature and did not file any return of income for the instant year.  AO  assessed the income as income from other sources. CIT(A) confirmed the order of the AO . Tribunal held that the interest income received by the assessee from the FDRs/ICDs made out of funds are inextricably linked to the development of port terminal and other infrastructure which was yet to be completed and commissioned. These funds could not be used for the development work of the port due to late issuance of permissions / clearances by the Govt. authorities and also due to some local issues. Therefore, the interest income is a capital receipt and is not taxable at all both under the normal provisions of the Act as well as under S.  115JB of the Act. ( AY. 2013-14  to 2015 -16)